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IFRS S2: Climate-related Disclosures·Paragraph 10

Climate-related risks and opportunities

Practical guidance for preparing this disclosure. Use this card to identify the information to prepare, verify claims and organise supporting evidence. For exact requirements, always refer to the official IFRS Foundation source.

Legal status

IFRS S1 and IFRS S2 were issued in June 2023 and are effective for annual reporting periods beginning on or after 1 January 2024.

Open official IFRS Foundation source ↗ Share

Published passport

Last reviewed 2026-07-30
RK Reviewed by Dr Ross KurinkoLinkedIn Strategic ESG Advisor · IFRS S1 & S2 / GRI / ESRS expert GRI Certified Global Trainer · PhD, University of Cambridge · ESG-AI expert 15+ years on FTSE 100 & Fortune Global 500 disclosures Canary Wharf, London LRA educational guidance · Not issued or endorsed by IFRS Foundation

Standard

IFRS S2: Climate-related Disclosures

Paragraph 10 · Issued 2023 · Effective from 1 January 2024

Effective

2024-01-01

Official source: Open ↗

Last reviewed

2026-07-30

LRA educational guidance · Not issued or endorsed by IFRS Foundation

To prepare this disclosure
7LRA preparation fields 6claims to verify 1evidence areas

Disclosure focus

The objective of this disclosure is to enable users of general purpose financial reports to understand the climate-related risks and opportunities that could reasonably be expected to affect the entity’s prospects.

Describe climate-related risks and opportunities affecting prospects; classify each risk as physical or transition; specify all applicable horizons of effects; and explain horizon definitions and their link to strategic planning. Apply IFRS S2.11–12 in identification.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS Foundation source.

Before you start

Before you start

A quick mental checklist before you prepare this disclosure — tick each as you settle it.

Preparation

Key information to prepare

Preparation field What to capture Evidence hint Owner
Climate-related risk or opportunity Describe each matter that could reasonably be expected to affect prospects. Current approved records and review evidence supporting climate-related risk or opportunity. Sustainability reporting / relevant process owner
Effect on prospects — supporting field Explain why it could affect cash flows, access to finance or cost of capital. Current approved records and review evidence supporting effect on prospects — supporting field. Sustainability reporting / relevant process owner
Risk classification For each risk, state whether it is physical or transition. Current approved records and review evidence supporting risk classification. Sustainability reporting / relevant process owner
Time horizon(s) of effects Specify all short-, medium- or long-term horizons over which effects could occur. Current approved records and review evidence supporting time horizon(s) of effects. Sustainability reporting / relevant process owner
Definitions of time horizons Explain how short, medium and long term are defined. Current approved records and review evidence supporting definitions of time horizons. Sustainability reporting / relevant process owner
Link to strategic planning horizons Explain how definitions link to strategic decision-making horizons. Current approved records and review evidence supporting link to strategic planning horizons. Sustainability reporting / relevant process owner
Identification basis — supporting field Document IFRS S2.11–12 application. Current approved records and review evidence supporting identification basis — supporting field. Sustainability reporting / relevant process owner
＋ Show s2-10 sub-elements (LRA working checklist)

How to prepare it

Apply IFRS S2.11–12.
Determine which matters could affect prospects.
Draft entity-specific descriptions.
Classify each risk.
Assess all horizons of effects.
Define horizons and planning linkage.
Review materiality, aggregation and connected information.

Request the data

Request the disclosure evidence

Translate the disclosure into an internal business question — then adapt it to your organisation's own language.

Request entity-specific description, risk/opportunity status, prospects rationale, physical/transition classification for risks, all horizons of effects, supporting evidence, horizon definitions, planning linkage and industry-topic assessment. Remove arbitrary item counts and mandatory location fields.

Use the organisation's own role and document names, but preserve the defined IFRS / ISSB terms and the scope described above.

Better request

Request entity-specific description, risk/opportunity status, prospects rationale, physical/transition classification for risks, all horizons of effects, supporting evidence, horizon definitions, planning linkage and industry-topic assessment. Remove arbitrary item counts and mandatory location fields.

Draft your disclosure

Notes that turn data into a disclosure

LRA training templates — adapt them to your organisation, and check the official source before sign-off.

Method note

Describe each risk and opportunity; classify risks as physical or transition; specify all horizons of effects; define horizons and link them to strategic planning.

Context note

Apply IFRS S2.10 using the exact paragraph scope and cross-references stated in the official IFRS source.

Download Centre

Preparation tools & forms

Professional preparation tools for s2-10 — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI Assistant.

Free · Community members
01XLSPrep & Assurance workbookDatapoints, risks, evidence to check, owner and evidence pack.Get it free ↧ 02XLSData-request packRequest email, message template, response fields and sign-off structure.Get it free ↧ 03PDFLibrary CardPrintable one-page summary of this disclosure card.Get it free ↧

Assurance readiness

For each claim, check the evidence

Claim Risk Evidence to check
Risks/opportunities affecting prospects described.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
Every risk classified physical/transition.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
All horizons of effects specified.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
Horizon definitions and planning linkage explained.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
Reasonable/supportable information used.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
Industry-based disclosure topics considered.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.

Evidence pack to prepare

Common reporting gaps

Generic topic lists.
Missing prospects rationale.
Impacts not translated into risks/opportunities.
Opportunities incorrectly classified.
Risk classification absent.
One horizon forced.
Response timing used instead of effect timing.
Horizon definitions or planning linkage absent.
IFRS S2.11–12 not applied.
Content index treated as disclosure.
✓ LRA AI Assistant · Human-in-the-loop
Dr Ross Kurinko

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Framework references

Relevant IFRS / ISSB requirements and related disclosures

Available framework references and nearby disclosures relevant to preparing this requirement.

IFRS / ISSB

s2-10

within IFRS S2: Climate-related Disclosures

Open official source →

Related & explore

Identification inputs and industry topics → CardObjective →Business model and value chain impact → CardStrategy response and transition plan → CardResourcing of climate actions → Browse all disclosures →

More in IFRS S2 → Browse full catalogue → Disclosure Library home → Search all disclosures →

Go deeper · s2-10

Learn to prepare this disclosure end-to-end

This guide covers one requirement. The IFRS S1 & S2 Reporting course walks the full ISSB workflow — governance, strategy, risk management and metrics — with exercises on your own data.

Available as Guided Flex, Live Cohort, 1:1 Expert Mentorship or Corporate Programme.

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